CHINA: Suntech Power Holdings Co. Ltd announced that Suntech Power International Ltd, the company's principal operating subsidiary in Europe, has been granted a provisional moratorium for two months on creditor claims by the judicial authorities in Schaffhausen, Switzerland.
SPI had applied for the provisional moratorium as a result of over-indebtedness, a requirement under local law and regulations. The majority of SPI's debt is Suntech inter-company debt. The court has appointed an administrator to assess SPI's financial condition and the prospects of reaching a composition agreement with creditors to restructure SPI's outstanding debt. SPI will continue its operations and serve its European customers during this period.
"The goal of the provisional moratorium is to allow time to restructure debt, primarily inter-company debt. During this process, we are committed to continuing to deliver high-quality solar products to our customers in Europe," said David King, Suntech's CEO.
Other than the insolvency and restructuring of Suntech Holdings' Chinese subsidiary Wuxi Suntech Power and the SPI composition proceedings, Suntech Holdings is not aware of any similar proceedings regarding any of its other entities.